By Dr. Thomas Schaefer
Program Director, Marketing and Economics at American Public University
If you are like most people, you have considered opening a small business at some point in time. In fact, almost 75 percent of adults in the United States have shared this dream. However, thinking about it and acting on it are two different things. Only about 10 percent of the population is actively involved in trying to start a new business. Those that act on their desire to start a business clearly are willing to take the initiative to do so; they understand that there is some level of risk involved; and they have confidence in themselves and their ability to succeed. However, trying to define the exact skills that are needed to succeed can be a little more difficult.
Entrepreneurs will wear many hats during the initial phases of their business and some will continue to do so for a significant amount of time. The reality is that you will be the owner, the purchasing agent, the salesperson, the marketing manager, the stock clerk, and a wide variety of other functions in your business. Over time, you may hire additional personnel to assist in some areas, but at least initially, you will likely be an organization of one. Therefore, you must have some level of knowledge and understanding in a wide variety of areas—a jack-of-all-trades so to speak. And if you don’t know a required skill or how to proceed in an area, you must be willing to learn from industry professionals or mentors. Being a generalist is also important. As an entrepreneur, all decisions start and end with you, so having a working knowledge of all the moving pieces within your business and industry is essential.
Lastly, accurate research is a critical skill. Before you even consider opening the door, there is a lot of information to be collected and decisions to be made. An understanding of the market and industry at a minimum must be gained, and it is highly encouraged that all potential ventures be thoroughly analyzed via the completion of a business plan. I have known many well-educated and industry-experienced individuals (myself included) whom have launched businesses without completing a full business plan and struggled as a result.
Although a formal education is not a requirement for success, it certainly provides students with additional knowledge. Remember, you’re going to be a generalist for a while, so having the exposure and knowledge gained from a formal business education can be valuable. Most business degrees offer interdisciplinary courses in accounting, finance, human resources, management, and marketing. And yes, many programs also offer specific courses in the area of entrepreneurship. Additionally, there will be opportunities to build out a business plan, and to hone your ideas before making significant investments of time and money to get your business started. Even if you’re not a business major, you’re learning valuable research and online communication skills.
Starting a new business is not an easy task. It will take a lot of time, dedication, and resources. Those considering becoming an entrepreneur need to make sure that they take the time to plan, and that they are prepared to face the challenges that will be presented. The good news is that there are plenty of resources available to assist. The Small Business Administration, the Kauffman Foundation, and your local chamber of commerce are all great sources for information and assistance.
About the Author:
Dr. Thomas Schaefer is a program director and associate professor at American Public University System. He has served in a variety of senior management positions within Fortune 500 companies. His educational background includes a Doctorate of Business Administration in Management and a Masters of Business Administration in International Trade from Argosy University. Dr. Schaefer provides guidance and services to large and medium sized organizations who are seeking to enhance and refine organizational effectiveness, business process, and overall profitability.
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